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They have very very few assets. The $9 billion valuation is a paper valuation that can vanish in one night.
by hackaflocka 10y ago
They have very very few assets. The $9 billion valuation is a paper valuation that can vanish in one night.
- scurvy 10y agoYou can pierce the corporate veil if there is willfull and intentional fraud. Doesn't always happen, but it's possible.
- bwilliams18 10y agoAnd what, compensate people with the stock of the company that was found to be willfully and intentionally defrauding them?
- dragonwriter 10y agoNo, compensate people with the money of the stockholders. That's what piercing the veil means: culpable stockholders assets are no longer protected from liability.
- gohrt 10y agopiercing the veil usually applies to manager-owners, like S-corps. If I invest in a corporation and the managers do something horrible, the managers could potentially be reached through the veil, but not the stockholders -- their only involvement was handing over money, so they had no wrongdoing. Now, investors who are also decision-makers on the Board or maangement, that's another story.
- PeterisP 10y agoIt requires that the particular stockholders be actually culpable and involved in the fraud - fraud done by non-owning management would not allow to capture funds of non-managing investors.
- bwilliams18 10y agoWhat I'm saying is the culpable stockholders (Holmes being the primary one) have few assets.
- rhizome 10y agoI'm sure their insurance is still paid up.
- jonknee 10y agoThey have taken in over $400,000,000 in investment, I'm sure there are more than a few bucks laying around.